SAIA Chairman

ITS HIGH TIME FOR THE AUCTIONEERING INDUSTRY TO UNITE AND FIGHT FOR A BETTER DEAL WITH THE PRINT MEDIA

By definition, auction is the time-defined marketing and sale of assets by competitive bid.  To achieve competition, auctioneers leverage the principles of supply and demand by marketing and publicizing auctions as all or nothing events with the hype and excitement that build-up to maximum attendance on the day of the auction.  The success of every auction depends on effective marketing and communication that aggressively exposes the assets earmarked for disposal to as many of the potential buyers as possible within the target market with the intention of generating interest and attracting as many potential buyers to the auction as possible.  For this reason, the fundamentals of the auction method of marketing lends the entire auction industry to its heavy reliance and usage of media products, mainly print and electronic media.

The auctioneering industry currently deals with the media on an individual basis.  Although there are isolated instances where some media houses offer preferential rates to SAIA members over and above the standard advertising rebate (15% currently), auction companies generally negotiate further individual discount deals with different media groups based on their own marketing and advertising spend.  This individualistic approach coupled with the dictates of LSM categorisation has fragmented the marketing of auctions, particularly print advertising to a point where the logistics of coordinating auction marketing campaigns are onerous and unduly expensive.  While the concept of discounting auction marketing and advertising spend on the basis of usage is acceptable, SAIA believes that a collective approach would benefit the auctioneering industry by streamlining auction marketing campaigns and thus becoming cost effective; both from a logistical and budgetary perspective.  The fact that auctioneers often deal independently with media platforms belonging to the same media groups also dilute the exposure and effectiveness of advertising messages because of the watered down approach as opposed to a targeted approach.  Therefore, the need to engage the media collectively prompted SAIA to support the initiative for the establishment of a dedicated auction supplement.  Extensive research has already been conducted generating compelling statistical justification for the establishment of the auction supplement.  Contrary to speculation by many people, the envisaged auction supplement is not a profit-driven private initiative.  Instead, the auction supplement has been set up as a Section 21 non-profit company.  

Considering the heavy reliance and substantial usage of media products by the auctioneering industry, the need for the envisaged auction supplement is long overdue.  Therefore, it will be in the interests of all auctioneers to support The Auctioneer, an insert that will be distributed through the Caxton Groups community newspapers. The reach of this publication is huge with 954 000 print copies being distributed through 25 different publications. Please read on to find out more about this exciting venture or e-mail bookings@theauctioneer.co.za for more information about this SAIA endorsed initiative.

Auctioneering Regards

TIRHANI MABUNDA
SAIA CHAIRPERSON

January 2010

The year 2009 will go down in history as one of the most difficult years ever, not only because of the effects of the global economic crisis; but mostly because of the pessimism and negativity as a result of the thereof.  By and large, people’s actions are determined by conditioning following a process widely known as ‘self fulfilling prophesy’.  We are what we believe.  Therefore, the pessimism and negativity of the year 2009 permeated almost every activity, be it social, economic and political. 

The general perception is that auctioneers thrive during bad economic times.  This perception does not factor in a fundamental principle of the auction method, namely; ‘supply and demand’.  When there is an abundance of stock, demand diminishes.  Recessionary economic conditions are even worse as they curtail buying power drastically.  The long and short of my argument is that auctioneers may have processed increased volumes of stock, but this may not have necessarily translated into increased revenues.

Enough of the year 2009 with its challenges and difficulties.  If 2009 was the year of pessimism and negativity as indicated above, the year 2010 is the year of optimism and enthusiasm.  The long road to economic recovery across the world started during the last quarter of 2009.  This trend is likely to gain momentum during 2010 globally, more so for South Africa.  You will agree with me that there is no better place than South Africa in 2010.  As President Zuma said in his New Year message, 2010 is the most important year in South Africa since 1994.  I would like to urge all auctioneers to join the rest of the country by uniting around the FIFA World Cup and showing the world what South Africans are capable of.  I would like to encourage those of you who have not yet watched Clint Eastwood’s ‘Invictus’ movie to prioritize a visit to the cinemas this January in order to lay a solid foundation for the optimistic and enthusiastic 2010 by reviving the spirit of the 1995 Rugby World Cup.

• · lobbying government to regulate the auctioneering industry by enacting legislation; and
• · setting educational, professional and ethical standards for the auctioneering industry.

  United, we can make a big difference, but divided, we will continue to devalue our beloved auctioneering profession and allow chancers to make a mockery of it.  The SAIA Board has done a lot during 2009 to advance the ten visionary goals crafted by the auctioneering industry at the auction Indaba held in July 2008.  We invite all practicing auctioneers to attend the SAIA Conference and AGM scheduled for the 29th and 30th of January 2010 at Misty Hills Hotel in Muldersdrift, Johannesburg. 

• Tangible and meaningful membership benefits;
• Interactive SAIA website, with value adding functionality such as auction calendar, auction advertising, etc.;
• Discounted trading rates;
• Annual SAIA Membership directory;
• Educational opportunities;
• Legislation and regulation;
• Networking opportunities, etc.

There is a Shangaan saying that goes; “Ndhwalo va ringetela makatleni” directly translated to mean that “You can only measure the weight of a load by putting it on your shoulders/back”.

Many people were skeptical about the achievement of the visionary goals crafted at the SAIA Indaba in July 2008.

I am very happy to be part of the crazy individuals who volunteered to serve SAIA in spite of the odds. The SAIA members couldn’t have chosen a better team for the task. I am proud to be the pilot of such a passionate, committed and capable crew. We have taken our first step, and there is nothing that will stop our air-borne plane from gaining momentum.

We invite all our members to buckle up and enjoy the flight.

Chat to you in October